o ensure a successful test marketing of its OmniPower energy bars, the OmniFoods marketing department has contracted with In-Store Placements Group (ISPG), a merchandising consult-ing firm. ISPG will work with the grocery store chain that is conducting the test-market study. Using the same 34-store sam-ple used in the test-market study, ISPG claims that the choice of shelf location and the presence of in-store OmniPower coupon dispensers both increase sales of the energy bars 1. Are the supporting data consistent with ISPG’s claims? Perform an appropriate statistical analysis to confirm (or discredit) the stated relationship between sales and the two independent variables of product shelf location and the pres-ence of in-store OmniPower coupon dispensers. 2. If you were advising OmniFoods, would you recommend using a specific shelf location and in-store coupon dispens-ers to sell OmniPower bars? 3. What additional data would you advise collecting in order to determine the effectiveness of the sales promotion tech-niques used by ISPG? Bars Price Promotion End-Cap Dispensers 4141 59 200 Produce Yes 3842 59 200 Produce Yes 3056 59 200 Beverage No 3519 59 200 Beverage Yes 4226 59 400 Produce No 4630 59 400 Beverage Yes 3507 59 400 Beverage Yes 3754 59 400 Produce Yes 5000 59 600 Produce No 5120 59 600 Produce No 4011 59 600 Beverage Yes 5015 59 600 Beverage No 1916 79 200 Beverage No 675 79 200 Beverage No 3636 79 200 Produce No 3224 79 200 Produce Yes 2295 79 400 Beverage No 2730 79 400 Beverage Yes 2618 79 400 Beverage No 4421 79 400 Produce Yes 4113 79 600 Produce Yes 3746 79 600 Beverage No 3532 79 600 Beverage No 3825 79 600 Beverage No 1096 99 200 Beverage Yes 761 99 200 Beverage Yes 2088 99 200 Produce Yes 820 99 200 Beverage Yes 2114 99 400 Produce Yes 1882 99 400 Beverage No 2159 99 400 Produce No 1602 99 400 Beverage Yes 3354 99 600 Produce No 2927 99 600 Produce No

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Related questions

Question

To ensure a successful test marketing of its OmniPower energy bars, the OmniFoods marketing department has contracted with In-Store Placements Group (ISPG), a merchandising consult-ing firm. ISPG will work with the grocery store chain that is conducting the test-market study. Using the same 34-store sam-ple used in the test-market study, ISPG claims that the choice of shelf location and the presence of in-store OmniPower coupon dispensers both increase sales of the energy bars

1. Are the supporting data consistent with ISPG’s claims? Perform an appropriate statistical analysis to confirm (or discredit) the stated relationship between sales and the two independent variables of product shelf location and the pres-ence of in-store OmniPower coupon dispensers.

2. If you were advising OmniFoods, would you recommend using a specific shelf location and in-store coupon dispens-ers to sell OmniPower bars?

3. What additional data would you advise collecting in order to determine the effectiveness of the sales promotion tech-niques used by ISPG?

Bars	Price	Promotion	End-Cap	Dispensers
4141	59	200	Produce	Yes
3842	59	200	Produce	Yes
3056	59	200	Beverage	No
3519	59	200	Beverage	Yes
4226	59	400	Produce	No
4630	59	400	Beverage	Yes
3507	59	400	Beverage	Yes
3754	59	400	Produce	Yes
5000	59	600	Produce	No
5120	59	600	Produce	No
4011	59	600	Beverage	Yes
5015	59	600	Beverage	No
1916	79	200	Beverage	No
675	79	200	Beverage	No
3636	79	200	Produce	No
3224	79	200	Produce	Yes
2295	79	400	Beverage	No
2730	79	400	Beverage	Yes
2618	79	400	Beverage	No
4421	79	400	Produce	Yes
4113	79	600	Produce	Yes
3746	79	600	Beverage	No
3532	79	600	Beverage	No
3825	79	600	Beverage	No
1096	99	200	Beverage	Yes
761	99	200	Beverage	Yes
2088	99	200	Produce	Yes
820	99	200	Beverage	Yes
2114	99	400	Produce	Yes
1882	99	400	Beverage	No
2159	99	400	Produce	No
1602	99	400	Beverage	Yes
3354	99	600	Produce	No
2927	99	600	Produce	No